In This Article:
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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R Stahl AG (XTER:RSL2) achieved a record level of orders, reaching 98.8 million euros, surpassing the previous all-time high.
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The company saw rising demand from LNG shipbuilding, petrochemical, and oil and gas industries.
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Cost of materials was well-controlled, with the cost of material ratio decreasing to 34.2%, indicating a healthy product mix.
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Operating expenses decreased by 2 million euros, demonstrating good cost control.
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R Stahl AG (XTER:RSL2) is gaining market share, particularly in the DACH region and Europe.
Negative Points
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Sales declined by 13.4% to 73.3 million euros due to weak demand and high market uncertainty.
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Net profits fell to 2.5 million euros, with earnings per share ending at minus $0.39.
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The company experienced a negative EBIT of minus 1.3 million euros, compared to a positive 4.1 million euros the previous year.
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There is significant uncertainty in the market, affecting big investment decisions and project bookings.
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Personal costs increased by 3.5%, mainly driven by wage increases, impacting profitability.
Q & A Highlights
Q: Can you elaborate on how R Stahl AG has gained market share, and how is the current order intake affected by recent uncertainties? A: Dr. Mathias Heilmann, CEO, explained that while there are no solid industry reports, feedback from customers and competitor behavior indicate significant market share gains in Europe, particularly in the DACH region. The company had a strong order intake in January, including major orders from the Middle East, but since then, order intake has slowed due to market uncertainties. However, a healthy project pipeline remains, awaiting activation.
Q: How does the current environment in the Americas and Europe compare to Asia, particularly in the chemical industry? A: Dr. Mathias Heilmann confirmed that the chemical industry in Europe is weak, but R Stahl AG has managed to remain stable, indicating market share gains. Asia is more active, and the company is expanding its presence there, including a new plant in India, aligning with strategies similar to those of BASF.
Q: Is the increase in personnel costs a permanent effect, and can you provide more details on the major projects from Asia? A: Dr. Mathias Heilmann noted that the increase in personnel costs was partly due to one-time payments from labor agreements, and they expect a positive development in cost control. Regarding the Asian projects, these involve specialized solutions for uninterrupted power supply systems for oil platforms, with potential for recurring business as the industry moves towards autonomous operations.